This article exploits a natural experiment to estimate the effects of need-based aid policies on first-year college persistence rates. In fall 2006, Ohio abruptly adopted a new state financial aid policy that was significantly more generous than the previous plan. Using student-level data and very narrowly defined sets of students, I estimate a…

This research examines the short term success of a postsecondary federal financial aid program, the SMART Grant, designed to increase this stock of scientific human capital. An exploration of the success of this program provides the opportunity to address two critically important research questions. Do financial incentives encourage students to…

College fees and tuition are rising--430 percent since 1982. Student borrowing for college has more than doubled since 1998, and about 50 percent of lower-income students head to college following high school, compared to 80 percent of high-income students, according to the National Center for Education Statistics. Various public school districts…